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Pragmatic Capitalism

Capital for Living a More Practical Life

High Debt and Low Incomes = Low Housing Demand

Here’s an interesting piece of research from the NY Fed that explains why the demand for housing remains relatively low – potential buyers just have too much debt and not enough income:

housing1

The recovery continues, but it remains lumpy due to the high levels of debt and the lack of strong income growth.  The Balance Sheet Recession is ending, but it’s still having a lasting impact on the US economy….

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